I'm not particularly familiar with these sets but Lego do produce some educational sets and I'm sure some will work with gears - have a look at the Dacta and Educational sets:
Would recommend the Technic Artic Truck. This model has a nifty gearbox that has a lever which switches from Tipping to Crane function. The gearbox works the tipper by turning the wheel and as for the crane well it goes up and down. A good example and not to difficult to build model. The tracks on this model will fascinate any child and being Lego can be converted to Tundra tyres from Lego their Technic flotation radial bar grips, black wheels look best. As a bonus this also has proper coil damper suspension. The tyres do foul the bodywork so fitted a small Lego cog at the cab sides so when on full travel the tyre and cog contact each other and not hit the bodywork plus the cog spins too. The cog is question is the small black one about the size of a new five pence. Children would live this model!
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http://www.brickowl.com/catalog/lego-sets/dacta
http://www.brickowl.com/catalog/lego-sets/education